Treating HMRC as an unpaid creditor does not go down well with the authorities. Where possible, liabilities should always be paid by their due dates.

Time to Pay (TTP) is a discretionary arrangement offered by HMRC that allows taxpayers who are unable to pay their tax liabilities in full by the due date to spread payments over an agreed period. It is designed to assist individuals and businesses facing temporary financial difficulties while ensuring HMRC collects taxes efficiently. However, TTP agreements are not automatic and must meet specific conditions laid out by HMRC.

HMRC distinguishes between taxpayers who genuinely are unable to pay  and those who simply want to try and defer payment. Typically, HMRC will want to review the taxpayer’s financial circumstances, including:

  • Income, expenses, assets, and liabilities.
  • Whether other tax liabilities can be paid during the TTP period.
  • Whether the taxpayer has provided truthful information.

HMRC considers TTP requests on a case-by-case basis, applying objective criteria to determine eligibility. The key conditions for approval include:

  • Financial Hardship
  • Means to Pay
  • Short Duration
  • Realistic Payment Proposals